A new report sheds light on the current landscape of rural landlords in Argyll and Bute, revealing significant challenges that could shape the future of the region’s housing market and highlighting the need for strategic interventions to support both landlords and tenants.

Commissioned by Argyll and Bute Citizens Advice in collaboration with Argyll and Bute Council, the report, written by Dr Andrew Robert Watson, focuses on the composition, challenges and future intentions of landlords from across Argyll and Bute.  Findings include:

• 16% of landlords reporting zero, or negative returns on their investments.
• 55% of landlords report a net return of 5% or less. There are many investment alternatives, however best fixed rates bank accounts pay in excess of 5%.
• 39% of landlords are aged 65 or older, raising questions about what happens when landlords retire.
• 62% of landlords believe the current legislative environment is unsupportive of private rental sector (PRS) investment, with 76% feeling that the Scottish Government does not understand the challenges faced by rural landlords.
• 33% of landlords in the region plan to sell their properties in the coming years, potentially exacerbating the existing housing crisis.

Due to the predominately rural nature of Argyll and Bute, the research found that landlords face unique challenges that are compounded by rising costs, a lack of available tradespeople, and an increasing legislative burden.

The report reveals many landlords in Argyll and Bute are struggling to maintain their properties, with the availability of tradespeople and maintenance of dwellings ranking as the top challenges.  The rising costs of compliance with new regulations, coupled with the pressures of inflation and interest rate rises, have led many landlords to question the viability of holding on to their properties.

With the potential for a significant reduction in available rental properties, the report outlines that without immediate action to support landlords, the already critical housing shortage in Argyll and Bute could worsen, leaving many tenants at risk.

With one in ten households in Argyll and Bute relying upon the private rental sector for their home, the report offers recommendations to the Scottish Government.

Dr Andrew Watson commended:

“PRS landlords play a critical role in Scotland’s housing provision. However, in recent times, their investments have been subject to a myriad of challenges including rising costs, tax changes, and an increasing legislative burden leading to many leaving the sector or considering doing so. For rural landlords, the challenges are more acute and more numerous. For example, rural landlords often struggle with maintenance and compliance requirements due to a shortage of rural tradespeople.

Compounded by landlords beginning to age out of the sector and the recent availability of alternative investments that offer higher returns for lower levels of risk, there is a real concern that supply will further wane. The implications for existing and potential tenants is clear- less choice and higher rents. Therefore, in the context of the housing emergency, there is an urgent need for a reset in the direction of travel. By working in partnership with private landlords, the Scottish Government, local authorities and those more broadly supporting the sector, can work to stabilise investment patterns, safeguard existing tenancies and thereafter, realise further sector improvements.”